GST RATE ON DETENTION CHARGES BY GOODS TRANSPORT AGENCY

KULDEEPSINGH KHANGAROT (1 Points)

02 December 2021  

Dear Sir/Madam,

 

One of my client is providing Goods Transport Agency Service  on Forward Charge Basis and charges GST @ 12%

on Freight Income.

Also , there is also a written contract of my client with one of his service recipient , that my client will charge Detention Charges @ 5000/per day if my client truck remain unloaded at there factory premises for the No of delay days .

Now, my client as usual use to raise Invoice for Trip on KM basis and use to mention separately the detention charges on the same invoice as per no of delay days and use to charge GST @ 12% by considering the supply as composite Supply.

But, department view is that detention charges is one type of rental charges , and not a composite supply thus the are asking to charge GST @ 18% on detention charges.

 

Kindly guide me at what rate Detention charges on Truck Hire should be charged?